The Hang Seng index climbed 0.4 percent to 22,276.7,
a shade below last Wednesday's close at the highest level since
August 2011. The China Enterprises index rose 0.7
percent, outpacing gains in other Asian benchmarks.

In China, the CSI300 of top Shanghai and Shenzhen
listings rose 1.1 percent to 2,271.05. The Shanghai Composite
also closed up 1.1 percent, bringing its rebound from a
near four-year low on Dec. 4 to 6.3 percent.

Data showing weaker-than-expected Chinese export growth last
month took some shine off weekend numbers that pointed to a
recovery in industrial production although it did little to dent
optimism in the stock market.

"At this point, bad data is not as much of a surprise for
the market as good data is," said Christian Keilland, head of
trading at BTIG in Hong Kong.

"Investors in China, who have had two really miserable
years, seem to be responding to change," said Keilland alluding
to comments from China's new Communist Party chief, Xi Jinping,
on fighting corruption and pushing reform.

Chinese property shares led gains on the day as investors
continued to buy into one of this year's strongest performing
sectors in Hong Kong.

Mainland developer China Vanke, the biggest by
sales, rose 1.5 percent and was among the top boosts on the
CSI300 after banking stocks. Vanke shares are up 24.9 percent
this year, far outperforming the CSI300's 3.2 percent decline.

Goldman Sachs has turned bullish on the prospects of Chinese
real estate developers, arguing that a recovery in sales as well
as prices will lead to better profitability and earnings growth.

Greentown China Holdings, Longfor Properties Co
Ltd and Vanke are among Goldman's top picks in the
sector.

Energy shares continued their recovery led by CNOOC
as a major overhang in the form of regulatory approval
for its $15.1 billion bid for Canada's Nexen
was removed over the weekend.

CNOOC shares rose 1.1 percent. The China oil major's shares
have recovered from the slump in August following its bid and
are currently at their highest level since May.

Analysts at HSBC, who have an "overweight" rating on CNOOC
shares, expect the Nexen deal to add about 8 percent to profit
and 20 percent to production for the Chinese company in 2013.